 |
PSM611S - PURCHASING AND SUPPLY MANAGEMENT - 2ND OPP - JUNE 2024 |
|
|
1 Page 1 |
▲back to top |
nAm I BI A un IVERSITY
OF SCIEnCE Ano TECHn OLOGY
FACULTYOF COMMERCEH, UMANSCIENCESAND EDUCATION
DEPARTMENTOF GOVERNANCEAND MANAGEMENTSCIENCES
QUALIFICATION:BACHELOROF MANAGEMENT
QUALIFICATIONCODE: 07BBMA
LEVEL:7
COURSECODE: PSM611S
COURSENAME: PURCHASINGAND SUPPLYMANAGEMENT
SESSION:JUNE 2024
DURATION: 3 HOURS
PAPER:1
MARKS: 100
EXAMINER(S)
SECONDOPPORTUNITYEXAMINATION QUESTION PAPER
Ms 0.N Kangandjo
MODERATOR: Mr M B Simasiku
THIS QUESTION PAPERCONSISTSOF S PAGES(Including this front page}
INSTRUCTIONS
1.
Answer all questions.
2.
Read all the questions carefully before answering.
3.
Marks for each question are indicated at the end of each question.
4.
Please ensure that your writing is legible, neat and presentable and start each Section on a
new page.
PERMISSIBLEMATERIALS
1. Examination question paper
2. Examination answer sheet
1
|
|
2 Page 2 |
▲back to top |
!SECTION~
Question 1
[20 Marks]
Select the correct answer by indicating the correct letter next to the corresponding question
number in the answer book provided. For example, 1.1 a.
1.1 The action of comparing purchasing and supply performance between various
divisions or between various organisations in known as __________
_
a. Gaining commodity knowledge
b. Setting budget objectives
C. Performing benchmarking
d. Following the historical approach
1.2 Which statement is incorrect? Reasonsfor holding inventory:
a. Continuity in production and marketing
b. Cost savings and hedging against price uncertainties.
c. Protection against supply certainties
d. Reduction of purchasing costs
1.3 Problems with disadvantaged small business purchasing programmes include
a. economic empowerment
b. small business promotion
c. communications
d. job creation
1.4 _______
is essentially the creation of a structure in which tasks can be
assigned ad to which resources can be allocated.
a. Planning
b. Organising
c. Coordinating
d. Controlling
1.5 The last stage of the strategic sourcing process is:
a. Develop a strategy.
b. Manage supplier relations.
c. Conduct market research.
d. Negotiate the contract.
1.6 ______
can be viewed as the organisation's considerationof, and response to,
issues beyond the narrow economic, technical and legal requirements of the organisation.
a. Risk management
b. Corporate social responsibility
c. Ethical conduct
d. Environmental management
2
|
|
3 Page 3 |
▲back to top |
1.7 If sales representative has identified a prospective client and decides to visit the client,
which one of the following would form part of the information phase of negotiation?
a. Gathering intelligence on the specific industry.
b. Using negotiation tactics on the client.
C. Drafting a statement on the agreements reached with the client.
d. Negotiation with the other suppliers of the client.
1.8 Identify in the following list, the one element that cannot be considered to be a feature
of e-commerce
a. E-commerce transactions are not always conducted on the Internet.
b. E-commerce includes communications.
c. E-commerce is an important change agent.
d. E-commerce enhances transactional processes in supply
1.9 From a strategic level, which of the following items is the most logical to outsource?
a. An item that is not critical to the successof the organisation.
b. An item that is critical to the success of the organisation
C. An item that requires specialised design, manufacturing skills or equipment
d. An item that fits well within the firm's core competencies
1.10 The fixed cost per unit item produced remains ................
a. Constant (Same) whether number of products increases or decreases
b. Increases as the number of products decreases
C. Increases as the number of products increases
d. Decreases as the number of products decreases
3
|
|
4 Page 4 |
▲back to top |
Question 2 (True or False)
Indicate your answers in the answer book provided.
[10 Marks]
Which of the following statements are true or false?
2.1 Supply chain management continues to become increasingly market oriented.
2.2 Cost saving is a possible advantage of outsourcing.
2.3 Flexibility is one of the selection criteria that a purchaser might use to identify
appropriate external suppliers.
2.4 To ensure success it is advisable for a business to enter into strategic alliances with
suppliers of bottleneck items.
2.5 All purchasing risks are avoidable.
2.6 Competitive negotiations are in line with the supply chain management philosophy.
2.7 A good negotiator is born with the ability to negotiate.
2.8 In a decentralised purchasing structure purchasing decisions are made from the
head office of the firm.
2.9 Geographical location is one of the key performance indicators of supplier
evaluation.
2.10 The first and the last steps in the five-step strategic sourcing processes are to
conduct market research and develop strategy.
4
|
|
5 Page 5 |
▲back to top |
!SECTION~
Question 3
[70 Marks]
3.1 Evaluation of performance is vital in order to ensure success. Outline the major steps
in the evaluation process of the purchasing and supply function.
(10}
3.2 A manufacturer of electrically powered tools for the engineering industry consists of
four separate business units, of which each undertakes its own purchasing activities.
What type of a purchasing structure are we observing in this case? Identify at least
three advantages of such a structure.
(10}
3.3 Outline and explain the different types of buyer-supplier relationships.
(6}
3.4 Discuss any four roles of Purchasing and Supply Management in Corporate
Governance
(8}
3.5 Identify the strategies to deal with or eliminate purchasing and supply risks.
(10)
3.6 The execution a purchasing transaction requires the performance of various activities
in a logical sequence. Urises aims to develop a standard purchasing process for his
company. Identify the seven steps of the purchasing cycle that Urises should consider
in developing such a model.
(7)
3.7 Suppose you are the purchaser in a cross-functional team and you must take the leading
role in negotiations with a supplier about a long-term contract. Draw a diagram
illustrating how you would go about initiating and completing the process (phases} of
negotiation.
(10}
3.8 Bob the owner of a newly established company had approached you to advice him
about stock keeping since he does not want to risk going without inventory. As a
competent Purchasing management graduate you would rather warn him about the
costs of holding inventory. Advice Bob about the various costs he will incur as a result
of carrying inventory.
(9)
END OF THEQUESTIONPAPER
5